ABSTRACT
This research examines the potential for expansion of cross-border electricity trade as a means to address clean energy integration concerns in East Asia and the role of regional governance structures in advancing energy market integration (EMI) efforts. For the sake of this research, focus is given to the role of trade as a supporting mechanism for regional and international electricity market expansion and the efficient disposal and purchase of power capacity resulting from increased clean energy utilization. This research includes an analysis of the background and development patterns of countries in East Asia, the resulting role for electricity trade given current global and regional climate and environmental challenges, and an examination of the function ASEAN EMI targets have played in regional and sub-regional EMI specifically within the BIMP-EAGA Subsystem (Brunei/Indonesia/Malaysia/Philippines–East Asia Growth Area). The significance of addressing these issues and incorporating an evaluation of regional governance and economic policies as they relate to electricity markets, lies in the pressing need for coordinated, global responses to climate change. Global economic growth has resulted in significant environmental degradation and climate damage. This is due in part to a heavy reliance on fossil-fuel-energy sources and industrial and export driven development. East Asia is not alone in its obligation to address global climate challenges. However, as a major contributor to global emissions and emerging leader in world economic growth, technology innovation, and international trade, East Asia is in a unique position to (1) contribute significantly to the global response to climate change and (2) counter the economic and environmental contradictions that have arisen as a result of traditional economic development practices in the region. BIMP-EAGA’s experiences in sub-regional EMI offer lessons learned for ASEAN and other emerging markets with ambitious decarbonization and net-zero goals coupled with electricity access and quality of life targets.
